A very strong open. Then a slip slip away. But through the middle of the day, there was a steady up trend.On the strength I was looking for a few potential shorts, and a place to lighten or adjust some longs.
There are a few good plays developing:
AXP – I re-entered this position on a morning spike and retest of it’s W4 top. 46.14. I entered Apr 45/37/5p for 2.10 and 2.05.
DTV – good earnings and the stock popped. My position when against me slightly. I exited 2 units of 20p Feb/Mar for .20. A scratch. I have already taken my initial risk off the table with previous sales.
GOOG- Bought Mar 510/490 for 6.10 @ underlying 525.31. I was using a consolidating chart in the short term, and a rise on lightening volume on the daily chart. This could have been a mistake, but I do have a defined stop. BIDU reports earnings after the close. I was stopped out at 533 and 5. Dang it.
Update: After earnings BIDU earnings reaction caused the stock to pop. GOOG went to 542 in the post market. Dodged a bullet there. I feel fortunate for only loosing 1.10.
MSFT – I am looking at an interesting play with a Mar/Apr 30/35 Diagonal calendar for a credit, this will work well with my long stock position. This offers an interesting theta decay option. I covered 1 of my 2 units with this Diag Calendar for a credit of .54. (underlying 29.03). This gains if the stock stays put, or moves up. It also gives me the option of rolling it into a credit spread for April.
I sold my unhedged unit of MSFT @ 29. I was right on the downtrend line. I am pleased to be out to catch the quick run off the bottom and still have a long hedged position.
DSX – is breaking down. This should help my position. I like the pattern failure. Opening at the high, closing a the low, then breaking down more today. Very Nice.
CELG – bought Apr 55/45p for 2.8 and 2.65. I bought the first on a failed trend break, then the second on the backside of a short term trendline. Stops are in place.
SDS – playing an afternoon turnaround after a doji. Bought @ 62.07, after the trend break. Internals were supporting. Stops in place. Unfortunately they were used @ 61.58.
UST- I picked up more Mar/Apr55p calendar for .60. This is great, I picked up some previously @ .53 Lots of Juice in the options of this sideways trading giant. I have been trying to add this position. Earnings took place in late January. The reason for the high price options is that there has been ongoing talk between Altria for a UST takeover.. My question is: Why would Altria be buying anything as they are getting ready to break themselves up. A 3:1 reward to risk ratio seems pretty good to me for this 37 day trade.
I was beaten today. The portfolio was down 1.1%. I worked a few plays some worked, some didn’t, and others have future potential.
HAL – escaped a 1 unit Mar/Apr 32.5 for a .05 loss @ .30. The stock blew above a resistance level I was watching
S&P – down 18pts. This helped my accts rise .9% on the day. Think we will probably be flat tomorrow. Heavy Put and Call volume @ 1350.
Quite day with some interesting possibilities. DTV, AXP, MSFT, GOOG